Clegg & Co Finance Directors Prosecuted

Media Release, 16 July 2009

Clegg & Co Finance Directors Prosecuted

The Companies Office has laid criminal charges in the Auckland District Court against Brian Samuel Clegg and Pamela Nicolson-Clegg, directors of failed finance company Clegg & Co Finance Limited, which is now in receivership.

Brian Clegg faces eight charges and Pamela Nicolson-Clegg faces seven charges.

“Both directors face charges relating to statements in the company’s 2005 and 2006 prospectuses and statements made to the company’s Trustee,” said the Registrar of Companies, Neville Harris.

“Brian Samuel Clegg faces a separate charge in relation to misleading or deceiving the Securities Commission.”

The National Enforcement Unit of the Companies Office began its investigation after the matter was referred to it by the Securities Commission.

Clegg & Co Finance Limited went into receivership on 4 October 2007. The Receivers have advised that members of the public are still owed around eight million dollars. Further payments to members of the public are unlikely to exceed ten cents in the dollar.

The defendants are due to appear in the Auckland District Court on 30 July.

Mr Harris said that the case is now before the Court and it would not be appropriate to comment further.

The Charges

Brian Clegg and Pamela Nicolson-Clegg face two charges each under Section 58 of the Securities Act 1978 for providing false statements in the company’s 2005 and 2006 prospectuses.

Brian Clegg and Pamela Nicolson-Clegg face a further five charges each under Section 377 of the Companies Act 1993 for providing false information in relation to the extent of related party lending in reports provided to the Trustee.

Brian Clegg faces one charge under Section 59A of the Securities Act 1978 for misleading the Securities Commission.

Penalties

If convicted of the charges relating to Section 58 of the Securities Act 1978, the directors of the company are liable to imprisonment for a term not exceeding 5 years, or a fine not exceeding $300,000.

If convicted of the charges relating to Section 59A of the Securities Act 1978, the director of the company faces a fine not exceeding $300,000 and if the offence is a continuing one, to a further fine not exceeding $10,000 for every day or part of a day during which the offence is continued.

If convicted of the charges relating to Section 377 of the Companies Act 1993, the directors of the company are liable to imprisonment for a term not exceeding 5 years, or to a fine not exceeding $200,000.

ENDS

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